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Bin Wang is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2012-13. 

 From 1993 to 98, Wang worked for the Ministry of Electronic Industry of China (MEI).  At MEI, he was in charge of managing the Electronic Industry Development Fund, which invested in companies engaged in information technology in China.  He also participated in the research and formulation of industrial policy.  In 1999, Wang set up a high-tech company and served as its CEO.  The company specialized in developing embedded software and finally became the only provider of mobile payment solutions for China UnionPay.  This company was acquired in 2010 as a price of $47.5 million USD and generated over 100x returns for the initial investors.  Wang joined Infotech Ventures, a leading venture investment company in China, as a venture partner in 2010.  His current responsibilities include identifying potential investment projects in the IT industry and doing research in venture investment and entrepreneurship.  Wang received his bachelor's degree in management engineering from the University of Electronic Science and Technology and his master's degree in public administration from Sichuan University. 

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Masashi Suzuki is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2012–13.  Suzuki has over 11 years of experience in the information technology arena at Sumitomo Corporation, one of the major trading and investment conglomerates in Japan, and its subsidiaries.  His experience in the IT industry includes system development, project management, sales, business development and strategy planning. While at Stanford, Suzuki is researching the difference in the profitability and structure of IT businesses between the United States and Japan.  Suzuki is interested in applying his knowledge gained here to his work and overall helping to revive the economy in Japan.  Suzuki graduated from Chuo University with a degree in business administration.

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Ryo Masuda is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2012-13.  Masuda has more than six years of experience in media markets working for Sumitomo Corporation, one of Japan's major trading and investment conglomerates.  Most recently, Masuda worked for Japan's largest CATV operator, one of Sumitomo Corporation's affiliated companies, where he was responsible for business development.  Masuda graduated from Hitotsubashi University with a bachelor's degree in commercial science.

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William J. Perry, in a talk at the "Innovations for Smart Green Cities: What's Working, What's Not, What's Next" conference, explained how a lack of investment in energy research and development continues America's addiction to foreign oil. He illustrated how game-changing research and events could shake up the industry.
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This research area explores the national and international land and water laws that govern land tenure and property rights in sub-Saharan African countries, with the aim of understanding how large-scale land investments influence the tenure security, and therefore food security, of local farmers. The World Bank and others have identified a large agro-ecological region of African known as the Guinea Savannah as well-positioned for major agricultural development.

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Abstract

Mark C. Thurber, David R. Hults

National oil companies (NOCs) often behave in strikingly different ways from one another and from private, international oil companies (IOCs). Given that NOCs control about three-quarters of world oil reserves by equity share, their variation in corporate strategy has important implications for the world oil market. The recently released book Oil and Governance: State-owned Enterprises and the World Energy Supply, which we co-edited (along with our colleague, David Victor) and contributed to, explores the variation among NOCs through 15 detailed case studies and several cross-cutting pieces. Building off the research in that book, our aim in this essay is to discuss the differences among NOCs in their approach to risk

As described by Nolan and Thurber in Chapter 4 of our book, the notion of risk encapsulates both the likelihood of a negative outcome (e.g., of drilling a dry hole) and the loss that such an outcome would entail (e.g., the investment in an exploration well). Risks are pervasive in the oil industry because of the enormous sums of money on the line and the significant uncertainty around whether investments will prove successful. In this article we suggest that the goals of the state and its tools of governance may cause an NOC to tend towards one of three types of behavior: risk avoidance, risk taking, or risk management. Each of these three approaches to risk, we find, can be useful or counterproductive for the state depending on the context.

It can be useful for an NOC to avoid risk, as Sonangol has done, if its government is highly dependent on oil revenue, but this approach usually means that it must allow IOCs to shoulder risks if the oil sector is to thrive. Intelligent risk taking by the NOC, on the other hand, can help build domestic technological capability and may be a reasonable approach if the government has less need to maximize hydrocarbon revenue in the short term. Finally, commercial risk management by the NOC may be an appropriate model where the NOC has developed some competitive advantages and its government has few remaining expectations for the NOC apart from revenue generation. There is no “right” or “wrong” approach to risk for NOCs in a general sense. The goal of each government and its NOC should be to make sure that the way the NOC takes, avoids, or manages risk is of benefit to both the country and the NOC itself.

 

Link to article (free trial subscription available) => http://www.worldoil.com/June-2012-Risk-attitudes-shape-national-oil-company-strategies.html

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Mark C. Thurber
David Hults
  • Please click here to download the Roundtable Agenda.
  • Please click here to download the Speaker and Moderator Profiles.

Roundtable at Stanford

On June 26-27, the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) hosted a circle of leaders from academia, industry, and the public sector who are driving the understanding and best practice for smart green cities to gather for a dynamic and interactive roundtable at the Graduate School of Business at Stanford University.

The aim was to convene a productive mix of researchers and experts for presentations and fruitful discussion on the challenges and opportunities at the intersection of information technologies and energy that can transform buildings and transportation on the urban scale.

Smart and Green

Innovations at the intersection of smart and green-- in technologies, products and services--are transforming how we work and live. Smart represents ubiquitous information and communication technology, driven by advances in computing, internet, cloud, and mobile. Green signals bringing clean tech to energy consumers to reduce carbon emissions and increase energy efficiency.

Buildings and Transportation in Cities

More than half of the world’s population now resides in cities, with urbanization projected to intensify in key areas, such as in China and Africa.  In cities, buildings and transportation account for the largest proportion of energy use; together they also shape the quality of daily life and work.

Learning from Innovations Deployed or Ready to Demo

In these two key application areas, there has been a great deal of R&D, investment and experimentation, ranging from designs for whole new cities in Son

"Innovations for Smart Green Cities" Conference program
gdo and Masdar to installations of services on mobile devices in Seoul and Barcelona.  These advancements have been joined by innovations in public private partnerships, financial models, and policy instruments. Now that early phase innovations have been built, installed and tested by users, some products and services have proven to be successful. Others are less effective, economical or scalable than hoped; others are emerging as more disruptive and valuable than anticipated.  What have we learned to date?  What is on the horizon?

Key Questions

With the early phases of technologies, products and services now deployed, it is important to take stock.  What is working (and what is not)?  Why?  How can feedback from researchers, designers, vendors, and—importantly—users be leveraged for future improvement in design and strategy?   What new developments are ready to demo or be commercialized that may also significant impact the next generation of smart green cities?

During the “Smart Green Innovations” Roundtable, discussions focused on an array of questions, such as:

  • In the key application areas of buildings and transportation, what lessons have been learned through implementation of smart green products and services deployed to date?
  • What are critical bottlenecks for the development of smart green cities?  How to overcome challenges, such as facilitating rapid learning, proving financial viability, or integrating innovations into complex systems?
  • What frameworks and tools can be used to better analyze and improve smart green cities?
  • Which cities around the globe have demonstrated effective smart and green innovations?  Which are leading case studies that illustrate lessons on what is effective and scalable? 
  • What government roles and policies have been effective?  What partnerships—including those that are cross-discipline, cross-sector, cross-organization,  or cross-border—are helping accelerate the development and deployment of high impact innovations that can shape smart green cities?
  • How is the landscape for smart and green shifting globally--where are the hotspots or centers of knowledge and excellence?
  • Who are some of the key innovators, labs, firms, and organizations pioneering the way? What technologies, products, services, and business models are driving the next generation of innovation?
  • What firms and entrepreneurs look promising for leading the next wave of change for smart green cities?

Knight Management Center, Stanford Graduate School of Business

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Adrian Bonifacio, a second generation Filipino-American from Chicago, is one of the recipients of the Program on Human Rights and the McCoy Family Center for Ethics in Society's 2012 Human Rights Fellowship.  The Program on Human Rights at the Center on Democracy, Development, and the Rule of Law together with the McCoy Family Center for Ethics in Society offer four annual summer fellowships in human rights open to Stanford undergraduates interested in working for organizations, government agencies, NGOs or international organizations that promote or defend human rights.

This summer, Bonifacio will work with the Asian Pacific Mission for Migrants, a non-governmental organization based in Hong Kong that promotes and defends the rights of migrant workers, a majority of whom are Filipino. Filipino immigrants in Hong Kong work predominately as domestic workers. The situation of Filipino diasporas is very complex with more than 10% of the Filipino population abroad, and over 4,000 Filipinos leaving the country every day.

Passionate about Filipino and Filipino-American issues relating to human rights such as migration, exploitation, and servitude, Stanford undergraduate Bonifacio has joined Filipino groups such as Stanford’s Pilipino American Student Union (PASU) and Anakbayan Silicon Valley, a youth organization based in Santa Clara County. He is currently pursuing a major in international relations with a minor in economics as well as co-term masters degree in sociology.

In the 1970s, Filipino dictator Ferdinand Marcos began the Labor Export Policy (LEP), a deliberate policy to send Filipino workers abroad. “This became a vicious cycle, the Philippines tried to achieve economic development based on remittances but because it sends both high skill and low skill workers abroad, and because the remittances they send are not usually put towards investment and long term development, there is not much progress happening in the country," explained Bonifacio. "Every president since Marcos has continued to promote the LEP in the name of national development.”

Last summer, Bonifacio worked for HURIGHTS OSAKA, a human rights non-profit organization, where he conducted research related to Filipino migrants in Japan to understand the link between human rights and remittances. “Although it was difficult integrating with the community in such a limited timeframe, a lot of different opportunities presented themselves—celebrating Philippine Independence Day, cooking Filipino food for events, even performing traditional dances," said Bonifacio. "My supervisor at work and all the migrants I have come to know made my transition into life in Japan, as well as my research, much easier.”

Japan and agencies in the Philippines that facilitate labor migration are notorious for abusing “entertainment visas” which allowed young women to be trafficked into Japan. Many Filipino women were promised jobs in high-end hotels as singers or dancers, but upon arrival in Japan, were trafficked into bars, with some entering prostitution rings and red light districts... Starting in the mid-1980s, many Japanese men in rural areas began to “import” Filipino women as mail-order brides, to solve the demographic problem of low birth rates caused largely by women moving out to cities to pursue professional careers.

Although the mail-order bride phenomenon has died down and Japan has since abolished the entertainment visa in 2006, there are still cases of abuse and human trafficking. Moreover, Filipino men have a history of working in construction, often as day laborers with insecure sources of income and housing. According to Bonifacio, “It is hard to determine the proportion of remittances that come from exploitation, but if you look at general trends and the types of employment Filipinos have all over the world—for example as “entertainers” in Japan or domestic workers in Hong Kong, Saudi Arabia, and even the United States—one could say that remittances and exploitation are closely connected.”

In preparation for his fellowship in Hong Kong Bonifacio says, “I was humbled by what I saw in Japan. I think that one of the best things one can do to educate oneself - and something that does not always happen in a classroom - is to understand the community we want to serve. We need to learn about the issues these communities face before considering fighting for change.”

Students interested in applying to the human rights fellowship for the summer of 2013 should contact Nadejda Marques to learn about the selection process and deadline for submission.

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Scarborough Shoal, a tiny rocky outcropping and lagoon off the west coast of the Philippines, sits at the center of the latest South China Sea tug-of-war. Protesters took to the streets in Manila on May 11 to criticize China’s support of fishermen who entered the disputed territory a month ago and sparked a yet unresolved naval standoff between the Philippines and China. On May 9, while ships from both sides maneuvered in the area, Manila's secretary of defense assured Filipinos that if Beijing attacked, Washington would come to the country’s defense.  

That expectation had been strengthened in Manila in November 2011 when the visiting American secretary of state, Hillary Clinton, referred to the South China Sea as the “West Philippine Sea.” Clinton’s slip of the tongue was not a major diplomatic incident. But some Flipinos saw it as a sign of U.S. support for their government's maritime claims.

Washington’s refusal to side with any of the claimant states had not changed. What had changed was the level of American concern. In the November 2011 issue of Foreign Policy Clinton had defended the idea of a “pivot” toward Asia, meaning a renewed U.S. focus on Asia after a decade of intense military activity in Afghanistan and Iraq.

The term “pivot” has fallen out of favor in Washington, but the Obama administration’s heightened interest in Asia is real and ongoing, says Donald K. Emmerson, director of Stanford’s Southeast Asia Forum. He recently discussed the nuances of what he describes as an important but “lopsided pivot.”

How does the pivot fit into the larger global picture?

In the continuing debate as to whether the United States is in decline, the key question is: relative to what? Certainly, if we compare the situation now with the period immediately after World War II, the United States is less powerful relative to the power of other states. But 1945 ushered in a uniquely unipolar moment in American history. Americans had escaped the physical devastation wreaked on Europe and much of Asia. Germany and Japan lay in ruins. Twenty million Russians were dead. China’s long-running civil war would soon resume. Suddenly America had no credible competitors for global power.

Today? Conventional wisdom holds that Asia has become the center of gravity in the global economy. Yet even if we use purchasing power parity rather than exchange rates to measure the American share of world GDP, that share has only modestly decreased. Meanwhile, China’s remarkable rise may be leveling off. The evidence is less that the United States is in secular decline than that the world is changing in ways to which Americans need to adapt if they are to regain economic health. If the pivot facilitates that adaptation, it will have been a success.

Do you interpret the pivot to the Asia-Pacific as more hype or reality?

The pivot is definitely a reality, but the reality is partly about symbolism and atmospherics. The pivot conveys reassurance, particularly to Southeast Asia, that the United States cares about the Asia-Pacific region and that it is willing to cooperate more than before with the Association of Southeast Asian Nations (ASEAN). Part of that is simply “showing up”—a willingness to attend ASEAN regional meetings. Another part of the pivot, however, involves raising the American security profile in the region, which has so far strengthened ASEAN’s diplomatic hand in dealing with China’s sweeping claim to the South China Sea.

How has the pivot been received and interpreted in Asia?

Generally speaking, the pivot has been welcomed in Southeast Asia, despite worries that if it becomes an effort to contain China, a Sino-American cold war could result. The specific responses of Southeast Asian governments have differed, however, on a spectrum from passive acquiescence to active support.

In Japan, the rotation of prime ministers in and out of office has understandably focused that country’s politics more on domestic concerns, and the still not fully resolved disposition of U.S. forces on Okinawa has drawn energy from the bilateral relationship.

As a “middle power,” South Korea has been supportive of multilateral frameworks and solutions. Seoul is pleased to see a renewed American interest in working with Asians in multilateral settings such as ASEAN and the East Asia Summit.

China’s response has varied between cool and hostile. The foreign ministry has treated the pivot with some equanimity compared with the hostility of those in the People’s Liberation Army who view increased American involvement in Asia as a threat to Chinese aims and claims, especially regarding the South China Sea. China’s foreign policy is the outcome of contestation between various groups inside the country that do not necessarily see eye to eye on how best to handle the United States.

What do you see as the main implications, repercussions, and complications of the pivot?

The pivot, as Hillary Clinton advertised it in her Foreign Policy article, signals a shift in U.S. priorities away from Iraq and Afghanistan. For a time following the 9/11 attacks on America in 2001, the United States tended either to neglect Southeast Asia or to treat it as a second front in the “war on terror.” Economically, the pivot implies an acknowledgment that if America is to prosper in this century it will have to pay closer attention to Asia as an engine of global economic growth. Diplomatically, the pivot implies that with regard to Asian states, Washington cannot merely manage its relations bilaterally as the hub where their spokes meet, but must cultivate multilateral diplomacy as well. Militarily, the pivot implies that even while the American global force posture is drawn down in some parts of the world, it needs to be upgraded in Asia in response to Asian and American concerns over the terms on which China’s rise will take place.

A major constructive repercussion of the pivot has been the evolution of China’s own diplomacy in Southeast Asia. Previously China had disavowed multilateral diplomacy with Southeast Asians over claims to the South China Sea—a bilateralist strategy that in Southeast Asian eyes resembled an effort to “divide and rule.” America’s willingness to reach out to ASEAN and take part in ASEAN events has helped diplomats in any one Southeast Asian country to resist having to face China alone. Multilateral discussions, involving China and meant to prepare the way toward an eventual Code of Conduct, are now underway.

But as we saw recently during Hillary Clinton’s visit to the Philippines, it is important for Washington to maintain its independence and impartiality while facilitating peace in the region.

Complications? Yes, there is a danger that Washington could be dragged into supporting, or appearing to support, the claims of one of the Southeast Asian parties to the dispute. The Obama administration is aware of this risk, however, and I strongly doubt that an American official will again refer to the “West Philippine Sea.” 

A more serious complication in the longer run may arise from the pivot’s emphasis to date on Asian-Pacific security, and its relative lack of attention to creating and cultivating American economic opportunities in Asia.

China’s economic footprint in Asia is large and growing. It has moved up to become the main trading partner of many countries that used to trade proportionally more with the United States. An unbalanced relationship in which China saves and lends what Americans borrow and spend is unhealthy for both countries, and it cannot last. The pivot should forestall an invidious division of labor whereby Washington through the Seventh Fleet subsidizes the regional peace that enables Asians to prosper doing business with China. A higher priority needs to be placed on promoting American trade and investment in Asia, including China.

The Obama administration is hoping to persuade more Asian economies to join an arrangement called the Trans-Pacific Strategic Economic Partnership (TPP), but the bar that it sets is high. The TPP’s strict protections for the environment, labor, and intellectual property rights and its comprehensive cuts in both tariff and non-tariff barriers to trade have raised its quality but lowered its appeal, especially to the region’s larger economies. Meanwhile, anticipated cuts in American budgets for defense will only intensify the need to refocus the pivot on economic as well as military access to Asia.

Related Resources

Foreign Policy: “America’s Pacific Century”
November 2011 article by Hillary Clinton introducing the concept of the "Asia pivot."

Stanford Daily: "Obama pivots policy toward Asia"
Summary of Donald K. Emmerson's May 1, 2012 talk.

LinkAsia: "Treat Scarborough Shoal Incident as a 'Wake Up Call'"

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Hillary Clinton departs a U.S. navy ship docked in Manila Bay, November 2011.
Flickr / U.S. Navy photo by Mass Communication Specialist 3rd Class Andrew Ryan Smith; http://bit.ly/LyyYYd
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